RBI taking necessary action to ease pain of citizens: Urjit Patel

Mumbai: Reserve Bank of India Governor Urjit Patel finally broke his silence over demonetisation and said the RBI is taking all necessary action to ease the genuine pain of citizens. The central bank was monitoring the situation on a daily basis, he said.

Because of the large increase in deposits of banks on account of the return of Rs 1,000 and Rs 500 notes the RBI has announced an incremental CRR (Cash Reserve Ratio) of 100 per cent. The decision would be reviewed immediately after the government issues adequate quantum of MSS (Market Stablisation Scheme) bonds.

The RBI and government presses are running a full capacity to print as many new Rs 500 and Rs 2,000 notes, Patel informed.

He also urged the people to start using cash substitutes like debit cards and digital wallets, saying it will make transactions cheaper and easier in the long term.

The RBI is interacting with the banks every day and the situation is gradually easing. The queues in branches and ATMs are shorter and the markets are starting to function and there are no reported shortages of daily items of consumption, claimed Patel.